Privacy Act of 1974; Notice of a Computer Matching Program

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket No. FR-4456-N-08]

Privacy Act of 1974; Notice of a Computer Matching Program

AGENCY: Office of the Chief Information Officer, (HUD).

ACTION: Notice of a Computer Matching Program between HUD and the Small

Business Administration (SBA).

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SUMMARY: In accordance with the Privacy Act of 1974 (5 U.S.C. 552a), as

amended by the Computer Matching and Privacy Protection Act of 1988, as

amended, (Pub. L. 100-503), and the Office of Management and Budget

(OMB) Guidelines on the Conduct of Matching Programs (54 FR 25818 (June

19, 1989)), and OMB Bulletin 89-22, ``Instructions on Reporting

Computer Matching Programs to the Office of Management and Budget

(OMB), Congress and the Public,'' the Department of Housing and Urban

Development (HUD) is issuing a public notice of its intent to conduct a

computer matching program with the Small Business Administration (SBA)

to utilize a computer information system of HUD, the Credit Alert

Interactive Voice Response System (CAIVRS), with SBA's debtor files. In

addition to HUD's data, the CAIVRS data base includes delinquent debt

information from the Departments of Agriculture, Education Veterans

Affairs, and judgment lien data from the Department of Justice. This

match will allow prescreening of applicants for debts owed or loans

guaranteed by the Federal Government to ascertain if the applicant is

delinquent in paying a debt owed to or insured by the Federal

Government for HUD or SBA direct or guaranteed loans.

Before granting a loan, the lending agency and/or the authorized

lending institution will be able to interrogate the CAIVRS debtor file

which contains the Social Security Numbers (SSNs) of HUD's delinquent

debtors and defaulters and defaulted debtor records of the SBA and

verify that the loan applicant is not in default or delinquent on

direct or guaranteed loans of participating Federal programs of either

agency. Authorized users place a telephone call to the system. As a

result of the information produced by this match, the authorized users

may not deny, terminate, or make a final decision on any loan

assistance to an applicant or take other adverse action against such

applicant, until an officer or employee of such agency has

independently verified such information.

[[Page 57643]]

DATE: Effective Date: Computer matching is expected to begin at least

40 days from the date this computer matching notice is published,

providing no comments are received which would result in a contrary

determination. It will be accomplished 18 months from the beginning

date.

Comments Due Date: November 26, 1999.

ADDRESSEES: Interested persons are invited to submit comments regarding

this notice to the Rules Docket Clerk, Office of General Counsel, Room

10276, Department of Housing and Urban Development, 451 Seventh Street,

SW, Washington, DC 20410. Communications should refer to the above

docket number and title. A copy of each communication submitted will be

available for public inspection and copying between 7:30 a.m. and 5:30

p.m. weekdays at the above address.

FOR PRIVACY ACT INFORMATION AND FOR FURTHER INFORMATION FROM RECIPIENT

AGENCY CONTACT: Jeanette Smith, Departmental Privacy Act Officer,

Department of Housing and Urban Development, 451 Seventh Street, SW,

Room P8202, Washington, DC 20410, Telephone Number (202) 708-2374.

[This is not a toll-free number.]

FOR FURTHER INFORMATION FROM SOURCE AGENCY CONTACT: Ben Saars, Office

of Financial Assistance, Small Business Administration, 409 Third

Street, SW, Washington, DC 20416, Telephone Number (202) 401-1469.

[This is not a toll-free number.]

REPORTING: In accordance with Public Law 100-503, the Computer Matching

and Privacy Protection Act of 1988, as amended, and Office of

Management and Budget Bulletin 89-22, ``Instructions on Reporting

Computer Matching Programs to the Office of Management and Budget

(OMB), Congress and the Public;'' copies of this Notice and a report

are being provided to the Committee on Government Reform of the House

of Representatives, the Committee on Governmental Affairs of the United

States Senate, and the Office of Management and Budget.

AUTHORITY: The matching program will be conducted pursuant to Public

Law 100-503, ``The Computer Matching and Privacy Protection Act of

1988,'' as amended, and the Office of Management and Budget (OMB)

Circular A-129 (Revised January 1993), Policies for Federal Credit

Programs and Non-Tax Receivables. One of the purposes of all Executive

departments and agencies--including HUD--is to implement efficient

management practices for Federal credit programs. OMB Circular A-129

was issued under the authority of the Budget and Accounting Act of

1921, as amended; the Budget and Accounting Act of 1950, as amended;

the Debt Collection Act of 1982, as amended; and, the Deficit Reduction

Act of 1984, as amended.

OBJECTIVES TO BE MET BY THE MATCHING PROGRAM: The matching program will

allow SBA access to a system which permits prescreening of applicants

for debts owed or loans guaranteed by the Federal Government to

ascertain if the applicant is delinquent in paying a debt owed to or

insured by the Government. In addition, HUD will be provided access to

SBA's debtor data for prescreening purposes.

RECORDS TO BE MATCHED: HUD will utilize its system of records entitled

HUD/DEPT-2, Accounting Records. The debtor files for HUD programs

involved are included in this system of records. HUD's debtor files

contain information on borrowers and co-borrowers who are currently in

default (at least 90 days delinquent on their loans); or who have any

outstanding claims paid during the last three years on Title II insured

or guaranteed home mortgage loans; or individuals who have defaulted on

Section 312 rehabilitation loans; or individuals who have had a claim

paid in the last three years on a Title I loan. For the CAIVRS match,

HUD/DEPT-2, System of Records, receives its program inputs from HUD/

DEPT-28, Property Improvement and Manufactured (Mobile) Home Loans--

Default; HUD/DEPT-32, Delinquent/Default/ Assigned Temporary Mortgage

Assistance Payments (TMAP) Program; and HUD/CPD-1, Rehabilitation

Loans-Delinquent/Default.

The SBA will provide HUD with debtor files contained in its system

of records entitled, Loan Case File (SBA 075). HUD is maintaining SBA's

records only as a ministerial action on behalf of SBA, not as a part of

HUD's HUD/DEPT-2 system of records. SBA's data contain information on

individuals who have defaulted on their direct loans. The SBA will

retain ownership and responsibility for their systems of records that

they place with HUD. HUD serves only as a record location and routine

use recipient for SBA's data.

NOTICE PROCEDURES: HUD and the SBA will notify individuals at the time

of application (ensuring that routine use appears on the application

form) for guaranteed or direct loans that their records will be matched

to determine whether they are delinquent or in default on a Federal

debt. HUD and the SBA have published notices concerning routine use

disclosures in the Federal Register to inform individuals that a

computer match may be performed to determine a loan applicant's credit

status with the Federal Government.

CATEGORIES OF RECORDS/INDIVIDUALS INVOLVED: The debtor records include

these data elements: SSN, claim number, program code, and indication of

indebtedness. Categories of records include: records of claims and

defaults, repayment agreements, credit reports, financial statements,

and records of foreclosures. Categories of individuals include: former

mortgagors and purchasers of HUD-owned properties, manufactured

(mobile) home and home improvement loan debtors who are delinquent or

in default on their loans, and rehabilitation loan debtors who are

delinquent or in default on their loans.

PERIOD OF THE MATCH: Matching will begin at least 40 days from the date

copies of the signed (by both Data Integrity Boards) computer matching

agreement are sent to both Houses of Congress or at least 30 days from

the date this Notice is published in the Federal Register, whichever is

later, providing no comments are received which would result in a

contrary determination.

Dated: October 19, 1999.

Gloria R. Parker,

Chief Information Officer.

[FR Doc. 99-27837 Filed 10-25-99; 8:45 am]

BILLING CODE 4210-01-P